This article discusses Ian Simm’s Impax Management’s top 5 technology stock picks at the end of the second quarter. To know about the fund, its recent performance and the other technology stocks it held in its portfolio, please read: 10 Best Technology Stocks to Buy According to Ian Simm’s Impax Management.
5. PTC Inc. (NASDAQ:PTC)
Impax Management’s Stake Value: $447,211,000
Percentage of Impax Management’s 13F Portfolio: 1.84%
Number of Hedge Fund Holders (Q1): 41
PTC Inc. (NASDAQ:PTC) operates in two segments – professional services and software products. The company was founded in 1985 and was formerly known as Parametric Technology Corporation, but changed its name to PTC Inc. (NASDAQ:PTC) in 2013.
For its second quarter, PTC Inc. (NASDAQ:PTC) reported earnings per share of $0.97 on revenue of $462 million, missing analysts’ estimates by $0.09 and $11.1 million, respectively. However, post the earnings release on July 28, analysts at Mizuho reiterated their ‘Buy’ rating and upped the price target on the stock to $130 from $120.
4. Equinix, Inc. (NASDAQ:EQIX)
Impax Management’s Stake Value: $490,925,000
Percentage of Impax Management’s 13F Portfolio: 2.35%
Number of Hedge Fund Holders (Q1): 40
Equinix, Inc. (NASDAQ:EQIX) is one of the largest data center operators in the world. Although classified as a specialized REIT, the stock of Equinix, Inc. (NASDAQ:EQIX) usually follows the trajectory of the broader tech industry.
On July 28, Oppenheimer analyst, Timothy Horan, upgraded Equinix, Inc.’s (NASDAQ:EQIX) stock to ‘Outperform’ from ‘Market Perform’ but maintained his price target on it of $750. In his note to clients, Mr. Horan wrote:
“EQIX is the primary on-ramp for the cloud, with critical infrastructure and major barriers to entry giving it strong pricing power, which it is now using, and it is recession resistant, and relatively attractive, if the ten-year yield has peaked, which it likely has.”
3. Agilent Technologies, Inc. (NYSE:A)
Impax Management’s Stake Value: $569,693,000
Percentage of Impax Management’s 13F Portfolio: 2.31%
Number of Hedge Fund Holders (Q1): 43
Impax Management was the largest shareholder of Agilent Technologies, Inc. (NYSE:A) at the end of the first quarter among the 912 hedge funds we cover, followed by William Von Mueffling’s Cantillon Capital Management, which held 3.47 million shares.
On August 2, Agilent Technologies, Inc. (NYSE:A) announced that it had acquired Polymer Standards Service (PSS) for an undisclosed sum. PSS focuses on hardware and software solutions used for defining the makeup and creation of molecular structures. According to Agilent Technologies, Inc. (NYSE:A), this acquisition will help the company to grow its product portfolio and customer offerings, particularly in the chemical and biopharmaceutical industries.
2. Trimble Inc. (NASDAQ:TRMB)
Impax Management’s Stake Value: $680,719,000
Percentage of Impax Management’s 13F Portfolio: 2.81%
Number of Hedge Fund Holders (Q1): 28
Funds covered by Insider Monkey that held a stake in business solutions provider Trimble Inc. (NASDAQ:TRMB) declined to 28 at the end of March from 33 at the end of 2021. Trimble Inc. (NASDAQ:TRMB) breaks down its business into three segments – Buildings and Infrastructure, Resources and Utilities, and Transportation. Shares of the company have appreciated almost 50 times in the last 30 years.
In May, Bernstein analyst Chad Dillard released a research note arguing that Trimble Inc. (NASDAQ:TRMB) could unlock $3 billion in incremental value if it divests its agriculture business. In his note, Mr. Dillard wrote that if the company sells its agriculture business, the company will have “enough dry powder to curate its construction tech product offering as it sees fit through M&A and can compete against better capitalized peers such as Autodesk.”
1. Microsoft Corporation (NASDAQ:MSFT)
Impax Management’s Stake Value: $766,003,000
Percentage of Impax Management’s 13F Portfolio: 3.16%
Number of Hedge Fund Holders (Q1): 259
Impax Management didn’t make any changes to its holding in tech giant Microsoft Corporation (NASDAQ:MSFT) during the second quarter and the company remained the fund’s top technology stock pick at the end of that period.
Microsoft Corporation (NASDAQ:MSFT) reported earnings per share and revenue numbers below the consensus analysts’ estimate on July 26, following which several analysts on the Street lowered their price target on the stock. This included analysts at Wedbush, who reduced it to $320 from $340, and analysts at Wolfe Research, who reduced it to $275 from $320.
You can also look at Simon Sadler’s Segantii Capital is Bullish on These 10 Stocks and Morris Mark’s Mark Asset Management Latest Portfolio: Top 10 Stock Picks.
